EDITORS NOTE: Deal has been accepted.
Over a rollercoaster few weeks, Twitter Inc. (TWTR.N) will sign a sale agreement with Elon Musk for around $43 billion in cash, an offer which Musk called his “best and final” offer.
The social media company had been in talks with the Tesla and SpaceX CEO for weeks and will now close and finalize the deal. Musk will be purchasing Twitter in his personal capacity, and Tesla (TSLA.O) is not a party to the agreement.
Later on Monday, an announcement of the $54.20-per-share deal could be made when Twitter’s board convenes to discuss the merger. Here they will advise shareholders whether or not they should accept the offer, however there is a general sense on the board that there is a possibility that the deal could fall apart at any minute.
In pre-market trading, Twitter shares saw positive movement of 4.5% moving the price per share to $51.15.
Additionally, Twitter has been unable to obtain a “go-shop” provision in its deal with Musk that would allow it to seek other bids once the contract is complete. In this hypothetical case, Twitter would be able to accept an offer from another party by paying Musk a breakup fee.
Elon Musk, a prominent Twitter user, has argued that it must be taken private in order to develop and become a genuine forum for free expression.